Polyurethanes
Overview
Polyurethanes are a feature of everyday life. They’re present in our furniture, bedding, clothes, shoes, buildings, and cars. The journey from base chemicals such as propylene or benzene to end-use polyurethanes involves multiple steps and chemical products. Argus can help you to navigate this complex and volatile value chain and make better commercial decisions around sales, marketing, distribution and procurement.
Argus’ polyurethanes services give you in-depth global and regional pricing insight, including feedstock analysis, in single, concise and integrated reports. In addition to pricing, you get access to global industry news and analysis of key economic drivers on a weekly basis. We cover isocyanates, propylene oxide, propylene glycols and polyols.
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Latest polyurethanes news
Browse the latest market moving news on the global polyurethanes industry.
Japan PO and derivatives production, sales up in July
Japan PO and derivatives production, sales up in July
London, 19 September (Argus) — Japan's propylene oxide (PO) production rose in July, but stocks fell following brisk domestic sales in June-July, according to the latest data from the Ministry of Economy, Trade and Industry (Meti) . PO production increased by 4.8pc on the month to 24,900t in July, while inventories fell by 15.6pc to 12,200t, compared with a January-June average of 14,800t/month. June sales had risen by 12.5pc month on month to 24,300t, outstripping that month's production, and July sales were at a similar elevated level, helping to draw down stocks. Average monthly sales in January-May were 21,000 t/month and in 2023 were 22,000 t/month. Most of Japan's PO production is for domestic use, with around 1,500t exported so far this year, mainly to the US. Downstream, July production of flexible polyurethane foam rose by 16.4pc in July to 10,200t, compared with a January-June average of 8,400t/month. Sales also rose by 15.4pc to 9,600t, helping to temper the rise in stocks, which reached 2,700t, broadly in line with the January-June average of 2,600t/month. And production of rigid polyurethane foam also rose in July, up by 10.7pc month on month to 5,700t, well above the average 4,800 t/month produced in the first half of the year. Sales rose by 16.3pc to 5,300t in July, leaving stocks almost flat from June at 1,300t. By Laura Tovey-Fall Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US home construction up in Aug, PU steady
US home construction up in Aug, PU steady
Houston, 18 September (Argus) — The US housing market reported solid gains in permits and starts in August, a surprise uptick that could portend further gains in construction after the Federal Reserve today lowered borrowing costs for the first time in four years. Housing starts grew solidly in August, with the seasonally adjusted annual rate for privately-owned housing starts reported at 1.356mn units, still marking only a fourth monthly gain so far this year. The figure was 9.6pc higher than July's revised rate and 3.9pc higher than August 2023. Single family housing grew to a rate of 992,000 units in August, 15.8pc higher than July and 5.2pc higher than August last year. At the same time, permits also grew from July to August, with August's annual rate for privately-owned houses of 1.475mn units representing a 4.9pc increase from the revised July figures. However, they remained 6.5pc below August 2023. Single-family authorizations were at a rate of 967,000 in August, 2.8pc higher than July but 0.5pc below August 2023. On 18 September, the Federal Reserve cut its target interest rate by 50 basis points, the first rate cut since 2020. Officials signaled the potential for another half point cut by the end of 2024, with another full percentage point cut penciled in for 2025, all cuts in borrowing costs that will continue to help bring 30-year mortgage rates lower from multiyear highs of nearly 7.8pc seen in late 2023. The cut lowered the federal funds rate to 4.75-5pc from the prior range of 5.25-5.5pc, a two-decade high. PU sentiment Polyurethane (PU) demand in the construction sector had continued strong but steady demand in August while supply balanced after a period of tightness, according to market participants. The building blocks of polyurethanes, such as isocyanates like polymeric MDI (PMDI), go into insulation, roofing applications and carpet underlay. After some supply constraints earlier in the summer the market was working towards a balanced state in August with all production issues having been resolved. Some market participants saw a small bump up in demand during August, but for the most part demand was steady. Price increase announcements were heard for August PMDI contracts due to steady demand and the supply situation. Argus assessed August PMDI prices up by 3¢/lb from July as partial price increases were heard passing through for the month. By Aaron May and Catherine Rabe Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
BASF to end Ludwigshafen adipic acid production in 2025
BASF to end Ludwigshafen adipic acid production in 2025
London, 29 August (Argus) — German petrochemicals firm BASF will end the production of adipic acid at its Ludwigshafen chemical complex in 2025, the firm said today. Adipic acid is used for the production of aliphatic polyester polyols, which go into polyurethane production for end uses such as elastic foam, coatings and adhesives. BASF had already reduced adipic acid production at Ludwigshafen in a wave of measures announced in 2023 as part of a structural overhaul to ensure future competitiveness of the site and the wider company. The remaining adipic acid capacity was maintained partly to support the production of cyclododecanone (CDon) and cyclopentanone (CPon), but BASF will end production of those products at Ludwigshafen in the first half of 2025, reducing its need for adipic acid at the site. The end of CDon, CPon and adipic acid production at Ludwigshafen next year is intended to improve profitability at the site, BASF said. BASF still has adipic acid production in Chalampe, France, as part of a joint-venture with Domo Chemical which began in 2020. "In the changed market environment [the joint venture] has sufficient capacity to supply the business in Europe", BASF said in 2023 when it first announced the reduction of adipic acid production at Ludwigshafen. By Laura Tovey-Fall Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US housing construction weakens in July, PU steady
US housing construction weakens in July, PU steady
Houston, 16 August (Argus) — Housing permits and starts both fell in July to four-year lows as persistently high borrowing costs continue to weigh on the housing market, even as polyurethane (PU) demand has remained steady. Total housing starts fell by 6.8pc to a seasonally adjusted annual rate of 1.238mn in July from June's revised numbers, according to the US Census Bureau and the Department of Housing and Urban Development. This is down 16pc from July 2023, the month the Federal Reserve hiked its target lending rate to its current level, the highest in 23 years. The starts in July were at the lowest rate since 1.053mn in May 2020, when the Covid-19 pandemic had closed down much of the US economy. PU demand in the construction sector saw continued strong but steady demand in July while supply was balanced to tight, according to market participants. The building blocks of polyurethanes, such as isocyanates like polymeric MDI (PMDI), go into insulation, roofing applications and carpet underlay. One producer was still under force majeure on MDI through July but the upstream issues had been resolved and the producer was rebuilding inventory after Hurricane Beryl hit in early July. Supply and demand fundamentals along with cost pressures drove price increase announcements and implementation, pushing up monthly PMDI contracts in July. Argus assessed the US polymeric MDI (PMDI) contract price increasing by 5¢/lb to a midpoint at 100.5¢/lb in July. Additional price increases are expected for August contracts, according to market participants. Housing permits were issued at a rate of 1.396mn in July. This is down 4pc from June and 7pc down from July 2023. This was the lowest rate of permit issuance since June 2020. High borrowing costs appear to have a more acutely negative impact on the housing market the longer they remain elevated. Starts and permits were both at their lowest rate since the middle of 2020 when Covid-19 paralyzed a large portion of the US housing market and the economy was just emerging from a brief, sharp recession. Single-family starts extended their decline into a fifth month, down 14pc to a rate of 851,000 in July from the prior month and off by 15pc from July 2023. Starts on multifamily structures of five or more units climbed 12pc to 363,000 units started in July from the prior month but were down by 24pc from a year earlier. Single-family housing permits were issued at a rate of 938,000 units in July, down 0.1pc from June and marking the sixth straight month of decreases. This was 1.6pc lower than July 2023. Multifamily permits fell by 12.4pc on the month. The Federal Reserve is widely expected to start lowering borrowing costs at its next policy meeting next month after holding its target rate at a 23-year high of 5.25-5.5pc since July of last year. Consumer inflation eased to an annual 2.9pc in July, the lowest in three years. The labor market has also shown signs of weakening among other softer data, including recent slides in stock prices, that triggered recession concerns. This has all led futures markets to give near certain odds of rate cuts beginning next month. They will be too late to shore up the housing market this year, but a sustained pace of rate cuts into 2025 may boost construction and sales next year. By Cole Sullivan, Aaron May and Catherine Rabe Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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